Aldi ramps up marketing spend

Posted by Daniel Palmer on 15th July 2009

Aldi is launching their first Australian television advertising campaign this week as they continue to gain traction in the Australian marketplace.

The German-owned discount grocer has steered clear of expensive advertising campaigns since their Australian launch in an attempt to keep costs down. But now the company sees a TV campaign as the logical next step beyond print and catalogue promotions to build their brand as they continue to press on with a hectic expansion strategy.

“Reaching 200 stores last year was a significant milestone for us – importantly, it meant we had reached a number of stores that made it viable for us to consider other advertising mediums to complement print and catalogue,” Matthew Barnes, Aldi’s Managing Director – Buying, explained.

The grocer said the campaign had been developed with the assistance of focus groups, who helped select the advertising concept from a group of six.

“The advertisements are uniquely ALDI – we’ve received strong feedback from consumers telling us they love our Weekly Specials, so these are an integral part of the campaign,” Mr Barnes said.

Aldi has yet to branch out beyond the eastern seaboard, but indicated plans to do so for the first time this week. They are growing at a rate of over 25 stores a year in the eastern states, with plans to enter Adelaide in the future – although a date has yet to be set.

Growth has been stimulated since the release of the ACCC’s Grocery Inquiry, which highlighted Aldi as the chain with the lowest prices and suggested the retailer had made a major impact on competition in the eastern states. With the economy deteriorating last year and the advertising copy basically written for them by the Grocery Choice price monitoring website, the company has been able to carry out a swift expansion along the eastern coast, with the proliferation of stores anticipated to maintain a constant pace over coming years.

The grocer hopes to eventually operate 600-700 stores nationally.